Unix Company Limited received the following selected information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year ended December 31, 2010.

Defined benefit obligation Fair value of plan assets Actuarial (gains) losses

2,000,000 800,000

0

January 1, 2010(ghc)

December 31,2010(ghc) 2,077,000

1,130,000 (200,000)

The service cost component of pension expense for employee services rendered in the current year amounted to 77,000 and the amortization of unrecognized past service cost was 115,000. The companys actual funding (contributions) of the plan in 2010 amounted to 250,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount rate was 10%. No pension asset/liability existed on January 1, 2010. Assume no benefits paid in 2010.

a. Prepare the journal entries to record pension expense and the employers contribution to the pension plan in 2010.

b. Indicate the pension-related amounts that would be reported on the income statement and the statement of financial position for Unix Company Limited for the year 2010.